What is a Value Stock?
A value stock traditionally has a lower price when compared to stock prices of companies in the same industry. This indicates that the company may be undervalued, as investors are not expressing as much interest in such companies. The most commonly used way to check for value is with the price-to-earnings multiple, or P/E. A low P/E multiple is a good indication that the stock is undervalued.
Benzinga Insights has compiled a list of value stocks in the financial services sector that may be worth watching:
- Weidai WEI - P/E: 2.52
- First National FXNC - P/E: 7.35
- First Mid Bancshares FMBH - P/E: 9.65
- Bank of N.T Butterfield NTB - P/E: 8.41
- South Plains Financial SPFI - P/E: 8.38
Weidai saw a decrease in earnings per share from 0.29 in Q3 to -0.26 now. Weidai does not have a dividend yield, which investors should be aware of when considering holding onto such a stock.
First National saw an increase in earnings per share from 0.34 in Q1 to 0.46 now. The company’s most recent dividend yield sits at 2.93%, which has increased by 0.83% from 2.1% last quarter.
First Mid Bancshares looks to be undervalued. It possesses an EPS of 0.6, which has not changed since last quarter (Q1). The company’s most recent dividend yield sits at 3.25%, which has increased by 0.94% from 2.31% last quarter.
Bank of N.T Butterfield’s earnings per share for Q2 sits at 0.67, whereas in Q1, they were at 0.78. Most recently, the company reported a dividend yield of 6.85%, which has decreased by 1.08% from last quarter’s yield of 7.93%.
This quarter, South Plains Financial experienced a decrease in earnings per share, which was 0.38 in Q1 and is now 0.31. Its most recent dividend yield is at 0.9%, which has decreased by 0.12% from 1.02% in the previous quarter.
These 5 value stocks were selected by Benzinga Insights based on quantified analysis. While this methodical judgment process is not meant to make final decisions, our technology can give investors additional perception into the sector.
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